diff --git a/config/config.exs b/config/config.exs
index d26f12bd..3024fce1 100644
--- a/config/config.exs
+++ b/config/config.exs
@@ -28,4 +28,5 @@ use Mix.Config
 # Configuration from the imported file will override the ones defined
 # here (which is why it is important to import them last).
 #
-#     import_config "#{Mix.env}.exs"
+
+import_config "#{Mix.env}.exs"
diff --git a/config/test.exs b/config/test.exs
new file mode 100644
index 00000000..86a56ec4
--- /dev/null
+++ b/config/test.exs
@@ -0,0 +1,11 @@
+use Mix.Config
+
+config :paper_trail, ecto_repos: [Repo]
+
+config :paper_trail, Repo,
+  adapter: Ecto.Adapters.Postgres,
+  username: "postgres",
+  password: "postgres",
+  database: "paper_trail_test",
+  hostname: "localhost",
+  poolsize: 10
diff --git a/example/lib/example.ex b/example/lib/example.ex
index a25e75fa..0d0c8e8f 100644
--- a/example/lib/example.ex
+++ b/example/lib/example.ex
@@ -5,11 +5,7 @@ defmodule Example do
     import Supervisor.Spec, warn: false
 
     children = [
-      # Start the endpoint when the application starts
       supervisor(Repo, []),
-      # Start the Ecto repository
-      # Here you could define other workers and supervisors as children
-      # worker(Caplair.Worker, [arg1, arg2, arg3]),
     ]
 
     # See http://elixir-lang.org/docs/stable/elixir/Supervisor.html
diff --git a/example/mix.lock b/example/mix.lock
index 640b1e49..6cce6261 100644
--- a/example/mix.lock
+++ b/example/mix.lock
@@ -2,7 +2,7 @@
   "db_connection": {:hex, :db_connection, "1.0.0-rc.3", "d9ceb670fe300271140af46d357b669983cd16bc0d01206d7d3222dde56cf038", [:mix], [{:sbroker, "~> 1.0.0-beta.3", [hex: :sbroker, optional: true]}, {:poolboy, "~> 1.5", [hex: :poolboy, optional: true]}, {:connection, "~> 1.0.2", [hex: :connection, optional: false]}]},
   "decimal": {:hex, :decimal, "1.1.2", "79a769d4657b2d537b51ef3c02d29ab7141d2b486b516c109642d453ee08e00c", [:mix], []},
   "ecto": {:hex, :ecto, "2.0.2", "b02331c1f20bbe944dbd33c8ecd8f1ccffecc02e344c4471a891baf3a25f5406", [:mix], [{:poison, "~> 1.5 or ~> 2.0", [hex: :poison, optional: true]}, {:sbroker, "~> 1.0-beta", [hex: :sbroker, optional: true]}, {:mariaex, "~> 0.7.7", [hex: :mariaex, optional: true]}, {:postgrex, "~> 0.11.2", [hex: :postgrex, optional: true]}, {:db_connection, "~> 1.0-rc.2", [hex: :db_connection, optional: true]}, {:decimal, "~> 1.0", [hex: :decimal, optional: false]}, {:poolboy, "~> 1.5", [hex: :poolboy, optional: false]}]},
-  "paper_trail": {:hex, :paper_trail, "0.0.9", "4e9342ee2bae6df9c80a2a3b5619e8df2a0113a545e5671d964ffa5dc9c37b69", [:mix], [{:poison, "2.1.0", [hex: :poison, optional: false]}, {:ecto, "~> 2.0.2", [hex: :ecto, optional: false]}, {:postgrex, ">= 0.0.0", [hex: :postgrex, optional: false]}]},
+  "paper_trail": {:hex, :paper_trail, "0.1.0", "0ebc0159795bb8d99b1633a552312a947b80f88f48d338ff02f1ba445fd3605e", [:mix], [{:poison, "2.1.0", [hex: :poison, optional: false]}, {:ecto, "~> 2.0.2", [hex: :ecto, optional: false]}, {:postgrex, ">= 0.0.0", [hex: :postgrex, optional: false]}]},
   "poison": {:hex, :poison, "2.1.0", "f583218ced822675e484648fa26c933d621373f01c6c76bd00005d7bd4b82e27", [:mix], []},
   "poolboy": {:hex, :poolboy, "1.5.1", "6b46163901cfd0a1b43d692657ed9d7e599853b3b21b95ae5ae0a777cf9b6ca8", [:rebar], []},
   "postgrex": {:hex, :postgrex, "0.11.2", "139755c1359d3c5c6d6e8b1ea72556d39e2746f61c6ddfb442813c91f53487e8", [:mix], [{:connection, "~> 1.0", [hex: :connection, optional: false]}, {:db_connection, "~> 1.0-rc", [hex: :db_connection, optional: false]}, {:decimal, "~> 1.0", [hex: :decimal, optional: false]}]}}
diff --git a/example/test/company_test.exs b/example/test/company_test.exs
index 49eb77c3..3da9490a 100644
--- a/example/test/company_test.exs
+++ b/example/test/company_test.exs
@@ -4,8 +4,6 @@ defmodule CompanyTest do
 
   doctest Company
 
- # maybe test meta tag insertion and relationships
-
   setup_all do
     Repo.delete_all(Person)
     Repo.delete_all(Company)
diff --git a/lib/paper_trail.ex b/lib/paper_trail.ex
index 5dd44537..f33c79e8 100644
--- a/lib/paper_trail.ex
+++ b/lib/paper_trail.ex
@@ -1,47 +1,10 @@
 defmodule PaperTrail do
-  alias Ecto.Multi
   import Ecto.Query
+  import PaperTrail.VersionQueries
+  
+  alias Ecto.Multi
   alias PaperTrail.Version
 
-  @doc """
-  Gets all the versions of a record given a module and its id
-  """
-  def get_versions(model, id) do
-    item_type = model |> Module.split |> List.last
-    version_query(item_type, id) |> Repo.all
-  end
-
-  @doc """
-  Gets all the versions of a record
-  """
-  def get_versions(record) do
-    item_type = record.__struct__ |> Module.split |> List.last
-    version_query(item_type, record.id) |> Repo.all
-  end
-
-  @doc """
-  Gets the last version of a record given its module reference and its id
-  """
-  def get_version(model, id) do
-    item_type = Module.split(model) |> List.last
-    last(version_query(item_type, id)) |> Repo.one
-  end
-
-  @doc """
-  Gets the last version of a record
-  """
-  def get_version(record) do
-    item_type = record.__struct__ |> Module.split |> List.last
-    last(version_query(item_type, record.id)) |> Repo.one
-  end
-
-  defp version_query(item_type, id) do
-    from v in Version,
-    where: v.item_type == ^item_type and v.item_id == ^id
-  end
-
-  # changeset = Model.changeset(Ecto.Repo.get(Model, id), params)
-
   @doc """
   Inserts a record to the database with a related version insertion in one transaction
   """
@@ -55,24 +18,6 @@ defmodule PaperTrail do
     |> Repo.transaction
   end
 
-  defp make_version_struct(%{event: "create"}, model, meta) do
-    %Version{
-      event: "create",
-      item_type: model.__struct__ |> Module.split |> List.last,
-      item_id: model.id,
-      item_changes: filter_item_changes(model),
-      meta: meta
-    }
-  end
-
-  defp filter_item_changes(model) do
-    relationships = model.__struct__.__schema__(:associations)
-
-    Map.drop(model, [:__struct__, :__meta__] ++ relationships)
-  end
-
-  # might make the changeset version
-
   @doc """
   Updates a record from the database with a related version insertion in one transaction
   """
@@ -86,16 +31,6 @@ defmodule PaperTrail do
     |> Repo.transaction
   end
 
-  defp make_version_struct(%{event: "update"}, changeset, meta) do
-    %Version{
-      event: "update",
-      item_type: changeset.data.__struct__ |> Module.split |> List.last,
-      item_id: changeset.data.id,
-      item_changes: changeset.changes,
-      meta: meta
-    }
-  end
-
   @doc """
   Deletes a record from the database with a related version insertion in one transaction
   """
@@ -109,6 +44,26 @@ defmodule PaperTrail do
     |> Repo.transaction
   end
 
+  defp make_version_struct(%{event: "create"}, model, meta) do
+    %Version{
+      event: "create",
+      item_type: model.__struct__ |> Module.split |> List.last,
+      item_id: model.id,
+      item_changes: filter_item_changes(model),
+      meta: meta
+    }
+  end
+
+  defp make_version_struct(%{event: "update"}, changeset, meta) do
+    %Version{
+      event: "update",
+      item_type: changeset.data.__struct__ |> Module.split |> List.last,
+      item_id: changeset.data.id,
+      item_changes: changeset.changes,
+      meta: meta
+    }
+  end
+
   defp make_version_struct(%{event: "destroy"}, model, meta) do
     %Version{
       event: "destroy",
@@ -118,4 +73,10 @@ defmodule PaperTrail do
       meta: meta
     }
   end
+
+  defp filter_item_changes(model) do
+    relationships = model.__struct__.__schema__(:associations)
+
+    Map.drop(model, [:__struct__, :__meta__] ++ relationships)
+  end
 end
diff --git a/lib/paper_trail/migration.ex b/lib/paper_trail/migration.ex
new file mode 100644
index 00000000..d90ecabe
--- /dev/null
+++ b/lib/paper_trail/migration.ex
@@ -0,0 +1,4 @@
+defmodule PaperTrail.Migration do
+  # TODO: this module will handle column changes in database schemas. It will query legacy column names
+  # and change the legacy column names to new column names in every :item_changes field of a PaperTrail.Version 
+end
diff --git a/lib/paper_trail/version_queries.ex b/lib/paper_trail/version_queries.ex
new file mode 100644
index 00000000..0aa75de2
--- /dev/null
+++ b/lib/paper_trail/version_queries.ex
@@ -0,0 +1,42 @@
+defmodule PaperTrail.VersionQueries do
+  import Ecto.Query
+  alias PaperTrail.Version
+
+
+  @doc """
+  Gets all the versions of a record given a module and its id
+  """
+  def get_versions(model, id) do
+    item_type = model |> Module.split |> List.last
+    version_query(item_type, id) |> Repo.all
+  end
+
+  @doc """
+  Gets all the versions of a record
+  """
+  def get_versions(record) do
+    item_type = record.__struct__ |> Module.split |> List.last
+    version_query(item_type, record.id) |> Repo.all
+  end
+
+  @doc """
+  Gets the last version of a record given its module reference and its id
+  """
+  def get_version(model, id) do
+    item_type = Module.split(model) |> List.last
+    last(version_query(item_type, id)) |> Repo.one
+  end
+
+  @doc """
+  Gets the last version of a record
+  """
+  def get_version(record) do
+    item_type = record.__struct__ |> Module.split |> List.last
+    last(version_query(item_type, record.id)) |> Repo.one
+  end
+
+  defp version_query(item_type, id) do
+    from v in Version,
+    where: v.item_type == ^item_type and v.item_id == ^id
+  end
+end
diff --git a/lib/version.ex b/lib/version.ex
index 093eb8fc..1860407b 100644
--- a/lib/version.ex
+++ b/lib/version.ex
@@ -5,8 +5,6 @@ defmodule PaperTrail.Version do
   import Ecto.Changeset
   import Ecto.Query
 
-  # how to record column changes in migration ?
-
   schema "versions" do
     field :event, :string
     field :item_type, :string
diff --git a/mix.exs b/mix.exs
index f24d14b0..0980ff1e 100644
--- a/mix.exs
+++ b/mix.exs
@@ -16,7 +16,9 @@ defmodule PaperTrail.Mixfile do
   #
   # Type "mix help compile.app" for more information
   def application do
-    []
+    [
+      applications: [:logger, :postgrex, :ecto]
+    ]
   end
 
   defp deps do
diff --git a/priv/repo/migrations/20160619190937_add_companies.exs b/priv/repo/migrations/20160619190937_add_companies.exs
index e2f0549f..76112671 100644
--- a/priv/repo/migrations/20160619190937_add_companies.exs
+++ b/priv/repo/migrations/20160619190937_add_companies.exs
@@ -1,10 +1,10 @@
-defmodule Repo.Migrations.AddCompanies do
+defmodule Repo.Migrations.CreateCompanies do
   use Ecto.Migration
 
   def change do
     create table(:companies) do
       add :name,       :string
-      add :is_active,  :string
+      add :is_active,  :boolean
       add :website,    :string
       add :city,       :string
       add :address,    :string
diff --git a/priv/repo/migrations/20160619190938_add_people.exs b/priv/repo/migrations/20160619190938_add_people.exs
index df486fb1..b4366260 100644
--- a/priv/repo/migrations/20160619190938_add_people.exs
+++ b/priv/repo/migrations/20160619190938_add_people.exs
@@ -1,4 +1,4 @@
-defmodule Repo.Migrations.AddPeople do
+defmodule Repo.Migrations.CreatePeople do
   use Ecto.Migration
 
   def change do
@@ -9,7 +9,11 @@ defmodule Repo.Migrations.AddPeople do
       add :gender, :boolean
       add :birthdate, :date
 
+      add :company_id, references(:companies), null: false
+
       timestamps
     end
+
+    create index(:people, [:company_id])
   end
 end
diff --git a/test/paper_trail_test.exs b/test/paper_trail_test.exs
index 565eb4c7..177b7b0d 100644
--- a/test/paper_trail_test.exs
+++ b/test/paper_trail_test.exs
@@ -1,63 +1,162 @@
 defmodule PaperTrailTest do
   use ExUnit.Case
+  import Ecto.Query
+
   doctest PaperTrail
 
-  defmodule Company do
-    use Ecto.Schema
-
-    import Ecto
-    import Ecto.Changeset
-    import Ecto.Query
-
-    schema "companies" do
-      field :name, :string
-      field :is_active, :boolean
-      field :website, :string
-      field :city, :string
-      field :address, :string
-      field :facebook, :string
-      field :twitter, :string
-      field :founded_in, :string
-
-      timestamps
-    end
-
-    @required_fields ~w()
-    @optional_fields ~w()
-
-    def changeset(model, params \\ :empty) do
-      model
-      |> cast(params, @required_fields, @optional_fields)
-    end
+  setup_all do
+    Repo.delete_all(Person)
+    Repo.delete_all(Company)
+    Repo.delete_all(PaperTrail.Version)
+    :ok
   end
 
-  defmodule Person do
-    use Ecto.Schema
+  test "creating a company creates a company version with correct attributes" do
+    new_company = Company.changeset(%Company{}, %{
+      name: "Acme LLC", is_active: true, city: "Greenwich", people: []
+    })
+
+    {:ok, result} = PaperTrail.insert(new_company)
+
+    company_count = Repo.all(
+      from company in Company,
+      select: count(company.id)
+    )
 
-    import Ecto
-    import Ecto.Changeset
-    import Ecto.Query
+    company = result[:model] |> Map.drop([:__meta__, :__struct__, :inserted_at, :updated_at, :id])
 
-    schema "people" do
-      field :first_name, :string
-      field :last_name, :string
-      field :visit_count, :integer
-      field :gender, :boolean
-      field :birthdate, Ecto.Date
+    version_count = Repo.all(
+      from version in PaperTrail.Version,
+      select: count(version.id)
+    )
 
-      timestamps
-    end
+    version = result[:version] |> Map.drop([:__meta__, :__struct__, :inserted_at])
 
-    @required_fields ~w()
-    @optional_fields ~w()
+    assert company_count == [1]
+    assert version_count == [1]
 
-    def changeset(model, params \\ :empty) do
-      model
-      |> cast(params, @required_fields, @optional_fields)
-    end
+    assert company == %{
+      name: "Acme LLC",
+      is_active: true,
+      city: "Greenwich",
+      website: nil,
+      address: nil,
+      facebook: nil,
+      twitter: nil,
+      founded_in: nil,
+      people: []
+    }
+
+    assert Map.drop(version, [:id]) == %{
+      event: "create",
+      item_type: "Company",
+      item_id: Repo.one(first(Company, :id)).id,
+      item_changes: Map.drop(result[:model], [:__meta__, :__struct__, :people]),
+      meta: nil
+    }
   end
 
-  test "" do
-    assert 1 + 1 == 2
+  test "updating a company creates a company version with correct item_changes" do
+    old_company = first(Company, :id) |> preload(:people) |> Repo.one
+    new_company = Company.changeset(old_company, %{
+      city: "Hong Kong",
+      website: "http://www.acme.com",
+      facebook: "acme.llc"
+    })
+
+    {:ok, result} = PaperTrail.update(new_company)
+
+    company_count = Repo.all(
+      from company in Company,
+      select: count(company.id)
+    )
+
+    company = result[:model] |> Map.drop([:__meta__, :__struct__, :inserted_at, :updated_at, :id])
+
+    version_count = Repo.all(
+      from version in PaperTrail.Version,
+      select: count(version.id)
+    )
+
+    version = result[:version] |> Map.drop([:__meta__, :__struct__, :inserted_at])
+
+    assert company_count == [1]
+    assert version_count == [2]
+
+    assert company == %{
+      name: "Acme LLC",
+      is_active: true,
+      city: "Hong Kong",
+      website: "http://www.acme.com",
+      address: nil,
+      facebook: "acme.llc",
+      twitter: nil,
+      founded_in: nil,
+      people: []
+    }
+
+    assert Map.drop(version, [:id]) == %{
+      event: "update",
+      item_type: "Company",
+      item_id: Repo.one(first(Company, :id)).id,
+      item_changes: %{city: "Hong Kong", website: "http://www.acme.com", facebook: "acme.llc"},
+      meta: nil
+    }
   end
+
+  test "deleting a company creates a company version with correct attributes" do
+    company = first(Company, :id) |> preload(:people) |> Repo.one
+
+    {:ok, result} = PaperTrail.delete(company)
+
+    company_count = Repo.all(
+      from company in Company,
+      select: count(company.id)
+    )
+
+    company_ref = result[:model] |> Map.drop([:__meta__, :__struct__, :inserted_at, :updated_at, :id])
+
+    version_count = Repo.all(
+      from version in PaperTrail.Version,
+      select: count(version.id)
+    )
+
+    version = result[:version] |> Map.drop([:__meta__, :__struct__, :inserted_at])
+
+    assert company_count == [0]
+    assert version_count == [3]
+
+    assert company_ref == %{
+      name: "Acme LLC",
+      is_active: true,
+      city: "Hong Kong",
+      website: "http://www.acme.com",
+      address: nil,
+      facebook: "acme.llc",
+      twitter: nil,
+      founded_in: nil,
+      people: []
+    }
+
+    assert Map.drop(version, [:id]) == %{
+      event: "destroy",
+      item_type: "Company",
+      item_id: company.id,
+      item_changes: %{
+        id: company.id,
+        inserted_at: company.inserted_at,
+        updated_at: company.updated_at,
+        name: "Acme LLC",
+        is_active: true,
+        website: "http://www.acme.com",
+        city: "Hong Kong",
+        address: nil,
+        facebook: "acme.llc",
+        twitter: nil,
+        founded_in: nil
+      },
+      meta: nil
+    }
+  end
+
 end
diff --git a/test/test_helper.exs b/test/test_helper.exs
index 869559e7..29292199 100644
--- a/test/test_helper.exs
+++ b/test/test_helper.exs
@@ -1 +1,70 @@
+defmodule Repo do
+  use Ecto.Repo, otp_app: :paper_trail
+end
+
+Mix.Task.run "ecto.create", ~w(-r Repo)
+Mix.Task.run "ecto.migrate", ~w(-r Repo)
+
+defmodule Company do
+  use Ecto.Schema
+
+  import Ecto
+  import Ecto.Changeset
+  import Ecto.Query
+
+  schema "companies" do
+    field :name, :string
+    field :is_active, :boolean
+    field :website, :string
+    field :city, :string
+    field :address, :string
+    field :facebook, :string
+    field :twitter, :string
+    field :founded_in, :string
+
+    has_many :people, Person
+
+    timestamps
+  end
+
+  @optional_fields ~w(name is_active website city address facebook twitter founded_in)
+
+  def changeset(model, params \\ %{}) do
+    model
+    |> cast(params, @optional_fields)
+    |> cast_assoc(:people, required: false)
+  end
+end
+
+defmodule Person do
+  use Ecto.Schema
+
+  import Ecto
+  import Ecto.Changeset
+  import Ecto.Query
+
+  schema "people" do
+    field :first_name, :string
+    field :last_name, :string
+    field :visit_count, :integer
+    field :gender, :boolean
+    field :birthdate, Ecto.Date
+
+    belongs_to :company, Company
+
+    timestamps
+  end
+
+  @optional_fields ~w(first_name last_name visit_count gender birthdate company_id)
+
+  def changeset(model, params \\ %{}) do
+    model
+    |> cast(params, @optional_fields)
+    |> foreign_key_constraint(:company_id)
+  end
+end
+
+Repo.start_link
+
+ExUnit.configure seed: 0
 ExUnit.start()